Management

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    1
  • Words:
    635

Marketing: Domestic and International Trade

MARKETING: DOMESTIC AND INTERNATIONAL TRADE

  1. Success abroad simply requires that you adapt your existing message to align with new cultural and linguistic values, providing customers with the native brand experiences they are expecting.’ Thoughts on the statement.

Nottage (2016) observes that there are a number of areas that individual nations seeking to secure international trading positions and investments must look into. The author explains that, in addition, to influencing trade regulatory measures so that other countries open their doors for foreign trade such nations will need to maintain robust economic competitiveness and also orient their domestic businesses to effectively operate at global or multinational levels. Further, he opines, to succeed in this pursuit, a number of aspects come into play. To start with, the success of foreign companies in any international business is dependent on how well they adapt their respective business environments to the ever changing cultural environments in the respective host countries. To understand the local culture, such companies have to take into consideration such elements as language, customs, values, religion and social institutions. However, the adaptation to these particular elements is much dependent on how the international companies respond to market entry levels taking into consideration issues like direct investments and licensing. Moreover, international companies need to not only understand but also influence consumer wants in the foreign countries. Secondly, Nottage (2016) argues that effective negotiations come in handy when striking business deals in foreign countries. He further expounds that the ability by a foreign company to communicate through the indigenous language becomes very key in winning customer confidence and this in turn sustains business growth and development. Besides, the author cautions that it is important to interrogate the aspect of pricing so as to surmount the possible business storms in the foreign country. Such decisions have to be made on basis of competition, availability of substitutes, marketing mix elements and strategic objectives of the given firm.

2. Is the domestic market becoming as complex due to multi-culturalism?

A claim initiated by Hong Kong’s Philip Morris Asia Limited in 2015 sought to challenge the legality of a bilateral investment treaty under the 2011 promotion investment and protection agreement (Nottage, 2016). The treaty’s provision for plain packaging measures, the company argued, was effectively reducing its products to commodities and this had seen its investments take a serious dip hence there was need for compensation. During the arbitration process Nottage (2016) observes that several petitioners joined the dispute settlement process arguing that the new measures were inconsistent with the Australia’s WTO commitments. The dispute brought to the fore the idea of multiculturalism, where both political and legal opinions had to be taken into account in the quest to accommodate ethnic diversity. In this case, it appeared that the aspect of multiculturalism was poised to suffer a setback as the Philip Morris Asia Limited was perceived as either unable or unwilling to respect human rights norms in conducting its businesses. Besides, the dispute raised a number of issues with regard to trade agreements and investment treaties that allowed foreign corporations to raise legal challenges against the domicile authorities. Indeed, the case was widely seen as an attempt to clip the right of democratic governments to regulate the conduct of businesses in their respective territories. In the same vein, many observers noted that subjecting states to defend their very own internal laws in tribunals consisting of individuals was grossly unfair (Nottage, 2016). Consequently, the impact of multiculturalism in domestic markets appeared to have taken a rather complicated dimension which may warrant a careful review in the near future especially in the bid to promote international trade.

References

Nottage, L., 2016. Investor-State Arbitration Policy and Practice in Australia. Centre for International Governance Innovation, 67 Erb Street West Waterloo, Ontario N2L 6C2 Canada